How Study Abroad Consultancies Actually Make Money

If you're considering studying abroad, you've probably encountered education consultancies—also called agents, counselors, or recruitment partners. They offer to help with everything: shortlisting universities, writing your SOP, preparing visa documents, even booking your flight.

Many students assume these services are free or low-cost. The reality is different. Most education agents are paid by universities, not by you. And that payment structure creates problems you should understand before trusting their advice.

This guide explains how the business actually works, how much money is involved, and what you can do to protect yourself.

What is an education agent or study abroad consultancy?

An education agent is a person or company that helps students apply to foreign universities. In exchange, the agent receives a commission from the university when you enroll.

The industry uses different names for the same thing:

• Education agents
• Recruitment agents
• Study abroad consultants
• Overseas education counselors
• Student recruitment partners

The core business model is the same: the university pays the agent when you enroll. This is typically a percentage of your first-year tuition.

According to a World Education Services sector overview, commissions typically run 10-15% of first-year tuition, and can reach 25% for shorter programs.

How much do education agents make per student?

The numbers are significant. Here's what the research shows:

Typical commission rates

What this looks like in dollars

If tuition is $25,000 and commission is 15%:

• Commission per student: $3,750

An agency placing 100 students per year earns $375,000 in gross commission. At 500 students, that's $1.875 million.

And this is before any fees charged directly to students.

Real spending by universities

UK universities have disclosed their agent spending:

Source: The Guardian investigation

In Australia, a government policy analysis found that several major universities together spent $147 million on agent commissions in a single year.

How common is agent use?

Agent usage varies by country, but it's extremely high in some markets:

• Australia: 73-86% of international students use agents (Australian government data)
• UK: 50-60% overall, higher from certain countries
• Canada: 47% of international students
• US: 40% of international students; 38.5% of institutions work with commissioned recruiters

In India specifically, British Council research found 43% of prospective students used or planned to use an agent for UK study.

How the agent-university relationship works

Step 1: The partnership

Universities sign contracts with agents, typically covering:

• Which countries the agent can recruit from
• Which programs are included
• Commission rates and payment timing
• Marketing rules and brand guidelines

A British Council legal overview describes commission being triggered when you pay first-year tuition, commonly at 10% of the fee.

Step 2: The agent recruits you

Agents find students through:

• School visits and education fairs
• Social media advertising
• Walk-in offices in major cities
• Word of mouth and referrals

Step 3: The agent "counsels" you

This is where it gets complicated. The agent provides advice on which universities to apply to. But remember: they're paid more when you enroll in certain programs.

Step 4: You enroll, money moves

Most contracts pay the agent after you:

• Accept an offer
• Pay tuition (often after a "census date" to reduce early withdrawals)

Some agents also collect fees directly from you—a practice called "double dipping."

Why this business model creates problems

The fundamental issue: the person advising you is paid by the institutions they're recommending.

This isn't speculation. Research confirms the conflict is real.

A WES survey of international students found that more than 30% of surveyed university staff agreed that "agents push students to where they receive the highest commission rate."

Problem 1: Steering to high-commission programs

When University A pays 10% and University B pays 18% plus bonuses, the agent has a financial incentive to recommend University B—regardless of which is better for you.

This isn't always disclosed. The UK's National Code of Ethical Practice says agents should be transparent about commercial relationships, but also notes that the specific commission amount is not expected to be disclosed (it's "commercially sensitive").

So you may never know whether money influenced the recommendation.

Problem 2: Double dipping—charging you and collecting commission

Many students believe "the agent is free."

But WES research found:

• A notable share of students paid commissioned agents more than $1,000
• Some East Asian students reported paying over $5,000
• The practice of collecting commission AND charging students is documented

So you can end up paying the agent while they also collect payment from the university.

Problem 3: Misleading information about outcomes

Agents sometimes make promises they can't keep:

• "Guaranteed admission"
• "Guaranteed visa"
• Unrealistic claims about job prospects
• False information about immigration pathways

A Financial Times investigation documented agents promoting misleading narratives about jobs and affordability, leaving students in debt and academic difficulty.

Australia's integrity policy analysis explicitly flags "false promises of pathways to permanent migration" as an exploitation risk.

Problem 4: Pushing low-quality or unaccredited programs

In documented cases:

• A student was told Oxford Brookes University is part of the University of Oxford—a completely false claim
• Students were pushed toward nursing courses not accredited by the relevant nursing board, making their qualification worthless for registration
• At Western Kentucky University, 25 of 60 Indian graduate students were suspended after agents recruited students who "lacked the necessary academic prerequisites"

Problem 5: Document fraud

Some bad actors:

• Falsify academic documents
• Create fake bank statements
• Submit altered SOPs
• Misuse your personal data

A WES survey reported students experiencing document fraud and unethical practices at higher rates when working with certain independent agents.

In Australian reporting, fraudulent agents allegedly stole student identities and unlawfully claimed refunds, with large financial losses.

Problem 6: Accountability gaps

When something goes wrong:

• The agent blames the university
• The university says the agent is "independent"
• The visa process penalizes you, not the agent

Australia's Nixon Report (2023) found that "education agents are not currently regulated in Australia"—literally anyone can become an education agent.

Major fraud cases you should know about

Canada immigration fraud (Punjab)

Consultant Brijesh Mishra's operation exposed:

• Over 700 students facing deportation
• 10,000+ fake acceptance letters uncovered
• Students paid ₹15-20 lakh each ($18,000-$24,000) for fraudulent services
• 89% of fraudulent cases involved Indian students

Students only discovered the fraud years later when applying for permanent residence.

US "University of Northern New Jersey" sting

A federal operation (2013-2016) created a fake university to expose pay-to-stay schemes:

• 21 agent-brokers arrested
• 1,076 foreign nationals implicated
• Defendants knowingly enrolled students who would not attend actual classes

Ongoing federal case: Study Across the Pond

Allegations of violating the Higher Education Act's ban on incentive compensation:

• Collaboration with 28+ UK universities
• Commission rates of 12.5-25% of tuition
• "Creating sham records to hide these arrangements"

How to protect yourself

You have two options:

1. Apply directly to universities (no agent)
2. Use an agent carefully, treating them as a sales channel

Option 1: Apply directly

In most countries, you can apply without any agent. Universities want international students and maintain offices specifically to help you.

United Kingdom: UCAS handles undergraduate applications for £28.95 covering up to five universities. Over 150,000 international applicants use it annually. For postgraduate, apply directly to universities.

United States: The Common Application serves 1,000+ colleges and is free. EducationUSA operates 430+ free advising centers in 175+ countries through the State Department—unbiased guidance with no commission conflicts.

Australia: Apply directly to universities. The CRICOS database lists all approved providers—only CRICOS-registered courses can be offered to student visa holders.

Canada: Apply directly to institutions. Verify schools appear on the Designated Learning Institution (DLI) list before enrolling.

Option 2: If you use an agent, verify and protect

A. Check if they're actually authorized

• Look for the university's "authorized agents" list on their website
• In Australia, providers must list authorized agents
• In Manitoba (Canada), providers must publish recruiter lists (Manitoba legislation)

If the agent can't be verified, that's a major red flag.

B. Ask conflict-of-interest questions in writing

Ask:

• "Which universities do you represent for commission?"
• "For the programs you're recommending, are you paid if I enroll?"
• "Which services are 'university pays' versus 'student pays'?"

Legitimate agents will answer directly. Evasion suggests problems.

C. Create your own comparison

For any recommendation, require:

1. The agent's recommended option
2. Two alternatives you found independently
3. A written comparison across cost, outcomes, entry requirements

If the agent refuses to compare or limits you to their list only, assume steering.

D. Never allow document changes

Hard rules:

• You review every document before submission
• You submit final versions yourself where possible
• You keep copies and submission receipts

This protects you from life-changing consequences if an agent falsifies anything.

E. Get fees in writing

Require:

• Itemized services with specific costs
• Clear deadlines
• Refund policy
• Data handling policy

WES research found many students later realized the process was cheaper than what they paid an agent.

Red flags that should make you walk away

• "Guaranteed admission" or "guaranteed visa": No legitimate agent can promise either
• Refusal to put advice in writing
• Pressure tactics: "Deposit today or lose your seat"
• Only recommending programs from their partner list
• Asking you to sign blank forms
• Encouraging fake documents: Altered bank statements, template SOPs, fake experience letters

Verification resources

Accreditation databases

Agent verification

• ICEF Agency Status: Accredits 1,500+ agencies in 115 countries with verifiable IDs
• University websites: Check "authorized agents" or "recruitment partners" pages
• British Council: Certifies UK counselors

Student communities for unfiltered perspectives

• The Student Room (UK)
• Reddit: r/ApplyingToCollege, r/UniUK, r/studyAbroad, r/gradadmissions
• University "chat with students" features and virtual open days

The bottom line

Education agents exist because they solve real problems: navigating unfamiliar systems, managing complex paperwork, providing local-language support. Some are ethical and genuinely helpful.

But the commission structure creates conflicts of interest that students often can't see. The person advising you about a life-changing educational decision is paid by the institutions they're recommending—not by you.

Your safest path:

1. Research independently first: Use official databases and direct university contact
2. Apply directly where possible: The systems are designed for it
3. If using an agent: Verify credentials, demand transparency, maintain control

The process is not as complicated as some consultancies suggest. Universities actively want international students and have staff dedicated to helping you apply. You don't need a middleman to access a university's application portal.

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Sources

• WES: The Use of Recruiting Agents
• WES: International Students' Experiences with Education Agents
• Australian Government: Improving Integrity in International Education
• British Council: Recruitment Agents Legal Overview
• University Affairs: Unregulated International Student Recruiters
• The Guardian: UK Universities Agent Fees
• Financial Times: International Student Recruitment
• EAIE: The Use of Overseas Agents
• ASQA: Education Agents Requirements
• Manitoba: International Education Act
• British Council: Agent Quality Framework

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